Question NW3606 to the Minister of Small Business Development
30 November 2022 - NW3606
Kruger, Mr HC to ask the Minister of Small Business Development
Whether her department has made an assessment on the regulatory measures (a) nationally, (b) provincially and (c) on the local government level that might impact negatively on (i) small , medium and micro enterprises and (ii) co-operatives; if not, why not, in each case; if so, what are the (aa) names and (bb) relevant details of all (aaa) legislation and (bbb) regulations that have been assessed to date?”
Reply:
(a)(b)&(c) The Department of Small Business Development (DSBD) has considered nationally, provincially and locally the legislation negatively affecting Small, medium and micro enterprises in South Africa. There are a multitude of legislative and regulatory criteria that small businesses need to comply with, not all of them are “onerous”, but still this provides a good indication that our regulatory frameworks are not well coordinated and synchronised, and are often duplicatory, placing both a cost and time burden on small businesses. The DSBD has prioritised twenty-nine (29) pieces of legislation (including related regulations, and by-laws, etc.) that impact on SMME growth and development. This is summarised in Figure 2 under point number aa&bb.
- The twenty-nine (29) pieces of legislation affect informal sector, small, medium micro enterprises and co-operatives across the spectrum.
- With regard to co-operatives, we have noted that CIPC reporting under the Co-operatives Development Act, is onerous as most co-operatives are required to submit audited financial statements. That imposes a considerable expense, which does not apply to any other small enterprise. This contrasts with the Company’s Act which has specified thresholds over which enterprises are required to submit audited annual financial statements.
(aa)&(bb) Names of legislation and (bb) relevant details
